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OUR REAL ESTATE BLOG

NAR Settlement: What You Need to Know


Graphic introducing the topic of the NAR settlement

I'm sure you've been hearing a lot about the recent settlement with the National Association of Realtors (NAR) for a whopping $418 million. That's definitely a significant sum of money. Interestingly, just two months ago, my firm, Keller Williams Realty, settled for $70 million prior to the NAR settlement.


What's This All About?

 

Now, before everyone starts panicking about the NAR settlement, let's take a moment to truly assess the situation. If you're a seller or a potential buyer, this news might seem alarming, but rest assured, it's not going to have an immediate, drastic impact on you. Let's break down the three major points of this lawsuit and I'll continue to keep you informed as I gather more details.


Three Major Points of the NAR Settlement

 

First and foremost, the lawsuit is targeting the way commissions are structured. Traditionally, the listing agent charges the seller around 5% to 6% to sell a property, and half of that is typically shared with the buyer's agent. The big change here is that now they want sellers to pay the seller's agent and buyers to pay the buyer's agent directly. However, this doesn't mean that a seller can't still choose to pay the buyer's agent. I will continue to counsel my sellers and to guide them to the best options for their situation.

 

Secondly, with commissions now being negotiable, buyer broker agreements will become mandatory. Just like when I represent sellers, when I'm working with buyers, I'll need to have a buyer broker agreement in place to outline our relationship and my responsibilities.

 

Lastly, the MLS will no longer allow listing agents to disclose how much a buyer's agent is compensated. This means that information about commissions won't be openly displayed.


The Takeaway

 

Change can be unsettling, but it's also an opportunity for growth. We'll adapt to these adjustments, and everything will continue to run smoothly. I'll keep you updated as I learn more. Stay tuned!




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Content by JPRE Group Oakland Realtor®

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